-0.17(-1.04%)

-0.00(-0.01%)

How volatility trader is playing 3M

optionMONSTER's trade scanners detected the purchase of 8,000 December 130 puts for $0.63 and 8,000 December 135 calls for $1.19. Volume was more than triple the previous open interest at each strike, indicating that new positions were implemented.

The investor paid $1.82 to initiate the trade, known as a strangle . He or she stands to profit from increased volatility , which would drive up the value of the industrial conglomerate's options. Alternatively, they will make money if the shares close below $128.18 or above $136.82 on expiration. (See our Education section)

MMM is up 0.2 percent to $133.77 today. The shares are up 44 percent so far this year, making them the fourth-best performing member of the Dow Jones Industrial Average. It's been climbing amid strong earnings and as an improving economy draws investors to industrial stocks.

Total option volume is slightly above average so far in the session, with that strangle dominating activity.